Difference Between NEFT, RTGS and IMPS

If you do online money transfer, then you must know about these 3 terms. 1) NEFT 2) RTGS 3) IMPS
Most of people don’t not know what is the difference between these 3 transfer modes, and they will not even know when they are used.

NEFT (RTGS) and RTGS (Real Time Gross Settlement) – These are the 2 most used fund transfer mechanisms that all banks provide you and you can transfer online money to any bank account. Both of them operate by the RBI (Reserve Bank of India).

IMPS (Immediate Payment Service) – a kind of mobile based money transfer mechanism that was started by NPCI (National Payments Corporation of India) in 2010. You can transfer online money instantly through IMPS. Your sent money immediately gets credited in the account of the beneficiary.

So If you want to transfer online money you have 3 options – NEFT, RTGS & IMPS. The work of these three platforms is the same, but there is some of difference between them, today I am going to tell you this.

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So let’s begin.


In NEFT you can transfer minimum Rs.1 and maximum Rs.10 lakh to any bank account.

Second, the money sent to you through NEFT, does not credit beneficiary’s account instantly, it takes 2-3 hours for money credit.

NEFT works on batches for transactions.

You can do NEFT transfer between 8am and 6:30 pm.. If you transfer money in holiday then your money will be credited to the account next day (working days).

Timings can vary across Banks. Overall, your sent money will be credited to the  bank account in the same day or next day, if the holiday happens, the amount will be credited next day.

NEFT charges

– For Rs 10,000: Rs 2.50 (+ Service Tax)

– For transactions above Rs 10,000 up to Rs 1 lakh: Rs 5 (+ Service Tax)

– For transactions above Rs 1 lakh and up to Rs 2 lakhs: Rs 15 (+ Service Tax)

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– For transactions above Rs 2 lakhs: Rs 25 (+ Service Tax)


RTGS is used to transfer large amounts online. Big companies, business persons transact through RTGS.

The money sent from RTGS immediately gets transferred to the account of the beneficiary.

A normal customer can not use RTGS, as the minimum transfer limit is Rs.2 lakh in this, if you have to send money below 2 lakh, then you can’t do RTGS, you can use NEFT for this.

You can do the transaction of Minimum Rs.2 lakh in RTGS and Maximum Rs.10 lakh. Mean for single day you can send 10 lakhs to anyone.

RTGS transfer is real time, that mean the money is sent to the beneficiary account immediately. You can transfer funds from RTGS between 8am to 4:30 PM.

RTGS charges

– 2 lakh to 5 lakh -: 30.00 per transaction;
– Above 5 lakh -: 55.00 per transaction.


IMPS is the most popular online transaction mechanism nowadays, because the money you send, credited instantly to the person’s account within a second.

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If you want to transfer small amount online to any account daily, IMPS is the best for you. You can send money from IMPS in any bank account.

IMPS 24/7 is available, you can also send money on Sunday or holiday.

With IMPS, you can send the amount per day to any bank account of Minimum Rs.1 and maximum Rs.2 lakh.

If the transfer limit is more than Rs.2 lakh then you can use NEFT or RTGS.

IMPS charges

– Rs.1000 – – (Rs.5 + service tax)

– Rs. 10000 to 1 lakh: – (Rs.5 + service tax)

– Rs.1 lakh to Rs.2 lakh :- (Rs.15 + service tax)

Wrapping Up

Just now a new online transfer mechanism has been introduced, UPI (Unified Payment Interface) which is becoming quite popular, but you can send very less amount online with UPI.

So you saw what mechanism is available for online money transfer and what is the difference between them. You may have also learned the difference between IMPS, NEFT and RTGS, decide with your transfer amount what option will be right for you.